Knowledge Management in Banking Industry: A Study of Islamic Banks in Bahrain

Abstract

This study examines the impact of Knowledge Management (KM) on the organizational performance of the banking industry in the Kingdom of Bahrain. It investigated the employees’ knowledge on the internal environment of the industry. It utilized the qualitative and quantitative research designs making used of the primary as well as the secondary data. The Qualitative method was employed through floating survey questionnaire and qualitative method was carried out in describing the status of the workforce management in Islamic banks as practiced. One hundred respondents were chosen through purposive sampling from the four Islamic banks in the Kingdom of Bahrain. Statistical tools such as mean, standard deviation, correlation, and T-Test were used in analyzing and interpreting data. The weighted mean was utilized to identify the average perception of the respondents. T-test was employed to calculate the difference in the perception of the respondents. The correlation was used to assess whether the means of two groups are statistically related from each other. The findings of the research are as follows: Firstly, the means for all the variables are more than 4 in the 5 points Likert Scale which indicate that respondents confirmed the effectiveness of the variables. Secondly, the p-value of the independent variables which are organizational culture and organizational structure in association with the dependent variables are both 0.000 which are smaller than 0.01. Likewise, the p-value of technological know-how and employee participation is 0.048 which is still smaller than 0.01 hence, there is strong evidence of significant relationship between the independent and dependent variables. Thirdly, there is significant relationship between the independent and dependent variables. Fourthly, there is no significant difference among the four Islamic banks which indicate that there is high validity of the results. .